The Nigerian National Petroleum Company Limited (NNPCL) has fully cleared its longstanding legacy debts, marking a significant turning point for Nigeria’s oil and gas sector. This milestone, announced during the Nigerian Oil and Gas Conference 2025 in Abuja, was hailed as a “game changer” by industry stakeholders, including Seplat Energy Plc and Oando Energy Resources.
Roger Brown, Chief Executive Officer of Seplat Energy, lauded the development during a panel session titled “Harnessing Africa’s Energy Shift – From Acquisition to Optimisation.” According to Brown, the NNPCL’s transformation has ushered in a new era of financial alignment, operational transparency, and strategic partnership with indigenous producers.
“When we listed in 2014, we raised $500 million. At the same time, NNPC owed us $550 million—more than we raised from our IPO,” Brown recalled. “That’s a thing of the past now. Cash flows have been paid. There is now financial alignment. It’s a partnership.”
This debt clearance by NNPCL comes after years of strained relations between the national oil firm and its joint venture partners due to multibillion-dollar arrears. The debt crisis, estimated at around $6 billion in 2024, severely disrupted petroleum supply chains, halted deliveries from international traders, and stifled local production.
However, with this financial reset, indigenous oil producers are now optimistic about the future.
Brown pointed to Seplat’s acquisition of ExxonMobil’s onshore assets in 2024 as evidence that local firms are now ready to step up and optimize formerly international-led projects. “We engage our communities, we operate for the long-term, and when disruptions occur—as they did in 2016—we don’t run. You don’t run from your own home,” he said.
Seplat currently holds 11 oil and gas blocks, eight of which it operates. The firm is also making strategic investments in Nigeria’s gas economy, supplying Nigeria LNG and exploring opportunities in both liquefied natural gas (LNG) and compressed natural gas (CNG) development.
Adding to the optimism, Dr. Ainojie Irune, Managing Director of Oando Energy Resources Nigeria Limited, praised the NNPC’s renewed focus on core upstream operations. “This is the first time we have a national energy company focused strictly on production targets,” Irune said. “They’ve placed the right people in the right roles, and they’re addressing security, operating costs, and contract processes head-on.”
Irune emphasized that indigenous players are now central to Nigeria’s upstream strategy. “We used to be fringe players, but today we are the backbone. With a reliable partner in NNPC, the future is promising,” he said.
Meanwhile, Shell Nigeria’s Managing Director, Ronald Adams, announced progress on the Ubonga North oil project, which reached Final Investment Decision in December 2024. The project is expected to add 100,000 barrels per day to Nigeria’s crude production capacity by mid-2027, further reinforcing confidence in the sector’s resurgence.
The clearing of legacy debts is seen as a vital step toward restoring trust and competitiveness in Nigeria’s oil industry. It enhances the country’s ability to attract fresh investments, drive production, and meet domestic and international energy demands.
The oil and gas sector remains a cornerstone of Nigeria’s economy, accounting for over 80% of foreign exchange earnings and more than 60% of government revenues. Stakeholders believe that with better fiscal discipline, partnerships, and community engagement, Nigeria can maximize its hydrocarbon potential while transitioning toward cleaner energy solutions.
NNPCL’s move to settle its decades-old debts is already reshaping Nigeria’s petroleum narrative. For producers like Seplat, Oando, and others, it means stronger cash flows, deeper collaborations, and renewed investor confidence. As the energy landscape evolves, stakeholders say the focus must remain on sustainability, transparency, and indigenous capacity building to ensure long-term growth.